Retirement blog
US Region2026 Retirement Contribution Limits and Catch-Up Contributions
The IRS increased several retirement contribution limits for 2026. This post separates the basic employee limits from catch-up contributions and translates the annual figures into monthly planning amounts.
Reviewed for 2026
2026 retirement contribution limits at a glance
The 2026 employee elective-deferral limit is $24,500 for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan. The combined Traditional and Roth IRA limit is $7,500.
Eligible workplace-plan participants age 50 or older generally have an additional $8,000 catch-up. For eligible participants ages 60 through 63, a higher $11,250 catch-up applies instead. The IRA catch-up for eligible people age 50 or older is $1,100.
A limit is capacity, not a recommendation
An IRS limit states how much may be contributed under the applicable rules. It does not say that every household can afford that amount or that reaching the limit will fund a particular retirement goal.
2026 contribution-limit table
| Contribution category | 2026 amount | Important scope |
|---|---|---|
| 401(k), 403(b), governmental 457, and federal TSP deferral | $24,500.00 | Employee elective deferrals shared across applicable workplace plans. |
| General workplace-plan catch-up, age 50 or older | $8,000.00 | If the plan permits catch-up contributions and the participant is eligible. |
| Higher workplace-plan catch-up, ages 60 through 63 | $11,250.00 | Replaces the general $8,000 catch-up for eligible participants in this age range. |
| Traditional and Roth IRAs combined | $7,500.00 | Shared across a person's Traditional and Roth IRAs; compensation and income rules apply. |
| IRA catch-up, age 50 or older | $1,100.00 | Raises the combined Traditional and Roth IRA contribution amount to $8,600. |
These figures do not include every plan type, compensation limit, income phase-out, or employer contribution rule. Use the IRS pages linked below and the actual plan document before making a contribution decision.
Hypothetical example: translating annual limits into monthly amounts
Dividing an annual limit by 12 produces a simple monthly pacing amount. It does not account for payroll frequency, uneven contributions, employer matching, compensation, or a plan's year-end true-up rules.
monthly pacing amount = annual contribution amount ÷ 12
| Contribution amount | Annual amount | Annual amount divided by 12 |
|---|---|---|
| Workplace-plan basic limit | $24,500.00 | $2,041.67 |
| Workplace plan with general age-50 catch-up | $32,500.00 | $2,708.33 |
| Workplace plan with ages-60-through-63 catch-up | $35,750.00 | $2,979.17 |
| IRA basic limit | $7,500.00 | $625.00 |
| IRA with age-50 catch-up | $8,600.00 | $716.67 |
This is a cash-flow translation, not a suggestion to contribute the maximum. A payroll election should also account for regular living expenses, emergency savings, debt, taxes, and the employer's matching formula.
Eligibility and account rules still matter
The workplace limit is shared across applicable employee elective deferrals. A catch-up contribution is available only when the participant and plan qualify. Employer contributions should be recorded separately from employee deferrals.
The IRA limit is shared across a person's Traditional and Roth IRAs. The amount that can be deducted for a Traditional IRA and the amount that can be contributed to a Roth IRA can depend on income, filing status, and workplace-plan coverage.
The 401(k)-versus-IRA guide explains the account distinctions. The employer-match post shows why employee and employer contributions should not be combined into one unexplained number.
How to use the figures in a retirement plan
- Record the contribution currently being made.
- Record any planned increase separately from the maximum permitted amount.
- Check whether the plan offers a match and whether a vesting schedule applies.
- Run the calculator with the current contribution, then test an affordable increase.
- Recheck annual limits, eligibility, and plan terms before changing payroll or IRA instructions.
Frequently asked questions
Is the 2026 401(k) contribution limit $24,500?
The 2026 employee elective-deferral limit is $24,500 for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan. Catch-up contributions may increase that amount for eligible participants.
Can someone contribute to both a 401(k) and an IRA?
Potentially, yes. The limits are separate, but IRA deductibility and Roth IRA eligibility can depend on income, filing status, and workplace-plan coverage. The applicable plan and tax rules still need to be checked.
Does turning 50 automatically increase a contribution?
No. A catch-up provision expands permitted contribution capacity for an eligible participant; it does not change payroll deductions automatically. The participant must elect a contribution and the workplace plan must permit the catch-up.
Do employer matching contributions use the $24,500 limit?
The $24,500 figure is the employee elective-deferral limit. Employer contributions are subject to separate overall plan limits and plan terms, so the employee deferral and employer match should be recorded separately.
Sources and important limits
Reference links
This calculator provides educational estimates only and is not financial, tax, legal, or investment advice.